I have just told my OH about my debt

mustang1

Well done for telling your OH - it must have been so difficult but at least now you can share the burden (emotionally and hopefully financially). You have already shown commitment to pay off this debt so this will go some distance to showing your OH how determined you are. Hope things went well tonight.

katsu

Engeroosi wrote: »

I agree if you pay it off as per normal with the mortgage, but although the 27k is now tied into the mortgage, overpay by whatever amount it would take to pay off the debt at credit card interest rate in for eg 2 years and you will find the 27k paid off alot quicker and cheaper. If that makes sense.

And that is the key, ensuring that if people put their debt into the mortgage they keep up the efforts to clear it rather than just saying "ooh, it only cost £100 a month on the mortgage to "clear" our debts" and then they pay the mortgage at the new higher rate for the remaining years.

OP - if you and your DH can continue to make efforts to clear the debt after you consolidate it, then it can be the right choice, but just putting it on the mortgage for the remaining X years can end up quite expensive (which I think was part of what gargrave was saying).

JasX

Engeroosi wrote: »

Gargrave not always, depends what int rate on the mortgage and how quick you pay the 27k debt, if you still try to pay that debt in the same time frame Im sure the debt will work out alot cheaper. 5% mortgage rate as opposed to 17% credit card rate.

On a point of maths informationd 5% over 15-20 years is actually alot MORE expensive than 17% over 2 years (hence the consolidation route usually being cautioned against).

Best route if you do that would be to try and get a mortgage deal without too punitive overpayment penalties and continue with (well at least 80% of) the frugality for the next 2 years anyway to make sure the 'extra' you added gets paid off.

Only then considre easing off the scrimping .....or once you're setteled into that pattern coulkd always set your sights on being Mortgage free and keep up the overpayments thinking about how much spare/disposable cash you'd have with both your incomes but no mortgage or interest to anyone to pay each month